Report
Michael Hodel
EUR 147.86 For Business Accounts Only

First Look: CenturyLink Agrees to Acquire Level 3 at a Big Premium

At first glance, CenturyLink’s decision to acquire Level 3 Communications looks expensive, but not entirely unreasonable. Putting these companies together makes good strategic sense, in our view, as both serve business customers in a very competitive market. In addition to traditional rivals AT&T and Verizon, Comcast, Charter, and other cable firms are expanding their presence in the business services market, working to steadily increase the size of the customers they can serve. A combined C...
Underlying
Lumen Technologies Inc.

CenturyLink, via its subsidiaries, is a communications company engaged in providing an array of integrated services to its business and residential customers. The company's segments include: International and Global Accounts Management, which provides products and services to global enterprise customers; Enterprise, which provides products and services to regional domestic and global enterprises; Small and Medium Business, which provides products and services to small and medium businesses directly and through its indirect channel partners; and Wholesale, which provides products and services to other communication providers across the wireline, wireless, cable, voice and data center sectors.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Michael Hodel

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